Seoul, South Korea – The South Korean government has announced the immediate resumption of its "Top Efficiency Home Appliance Rebate Program," offering consumers a 10% refund on purchases of eligible high-efficiency appliances, with a maximum rebate of 300,000 won per person. This initiative, backed by a 267.1 billion won supplementary budget for 2025 passed by the National Assembly on July 4th, aims to stimulate domestic consumption and mitigate peak summer electricity demand. The rebate applies retroactively to products purchased from July 4th, 2025.

This revival of the program, previously successful from 2020 to 2022, is a strategic move to bolster household spending amidst economic uncertainties while simultaneously promoting energy conservation. The Ministry of Trade, Industry and Energy (MOTIE) expects the program to generate over 2.5 trillion won in production and consumption, significantly boosting the economy in the short term.

Under the program, consumers who purchase government-designated high-efficiency appliances will receive 10% of their actual payment back in cash. For example, a 1 million won refrigerator purchased for 850,000 won after discounts would yield an 85,000 won rebate. The individual rebate cap is set at 300,000 won.

Eligible Appliances and Verification

The program covers 11 categories of home appliances: air conditioners, refrigerators, kimchi refrigerators, electric rice cookers, washing machines, clothing dryers, air purifiers, dehumidifiers, hot and cold water dispensers, televisions, and corded vacuum cleaners. Notably, corded vacuum cleaners are eligible for the rebate even if they are Grade 2, as Grade 1 models are currently unavailable in the market, making Grade 2 the highest efficiency recognized for this category.

It is crucial for consumers to note that not all products labeled "Grade 1" are automatically eligible. Only models pre-registered by MOTIE as "Rebate Eligible Models" qualify. This list can be verified on the official website of the program, which is managed by the Korea Energy Agency. Consumers are strongly advised to check the model name on the dedicated program website before making a purchase.

Application Process and Requirements

Applications for the rebate are set to begin in mid-August through a dedicated online system, which is currently under construction. Eligibility is straightforward: any South Korean national aged 19 or older at the time of application is qualified. Foreign nationals and corporations are excluded. The name of the product owner and the bank account holder for the rebate must match. Exceptions for proxy applications by spouses, direct family members, or social workers require additional documentation, including a power of attorney, family relationship certificate, and a copy of identification.

Required documents for application include the purchase receipt (clearly showing purchase date, model name, and final payment amount), photos of the product's energy grade label and nameplate (ensuring the model name is legible), the applicant's identification card, and bank account information. Even rental products can be eligible if the actual purchase price can be verified and the nominal owner applies directly. Indirect purchases via rental companies or third-party contracts are not accepted.

Program Integrity and Benefits

To maintain program integrity, any rebates received for products that are subsequently returned or contracts that are canceled must be repaid. Duplicate applications or fraudulent claims under another individual's name will lead to disqualification from all future government support programs, with MOTIE indicating potential legal action in such cases.

This initiative is particularly timely, aiming to encourage the replacement of older, less efficient appliances, especially seasonal items like air conditioners and dehumidifiers, thereby reducing overall energy consumption during peak demand periods. Grade 1 products are known to consume over 30% less electricity than standard models, offering long-term electricity bill savings beyond the initial rebate.

For detailed guidelines and frequently asked questions about the program, consumers can visit the official Korea Energy Agency website https://www.energy.or.kr/. Further updates on application dates, required documents, and procedures will be available via the website and its associated KakaoTalk channel.

Lee Ho-hyeon, the 2nd Vice Minister of Trade, Industry and Energy, emphasized the program's multifaceted benefits, stating, "The Top Appliance Program is a win-win-win initiative that can achieve the triple effects of stimulating domestic demand and restoring the people's livelihood economy, promoting high-efficiency home appliance penetration and reducing power consumption, and securing competitiveness in the home appliance industry to respond to internal and external crises." He also reiterated the government's commitment to ensuring a smooth and prompt rebate process for eligible citizens.